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Consider another set of net cash flow: Year Cash Flow 0 $2,000 1 2,000 2 0 3 1,500 4 2,500 5 4,000 What is the
Consider another set of net cash flow:
Year | Cash Flow |
0 | $2,000 |
1 | 2,000 |
2 | 0 |
3 | 1,500 |
4 | 2,500 |
5 | 4,000 |
What is the net present value of the stream if the opportunity cost of capital is 10%?
What is the value of the stream at the end of year % if the cash flows are invested in an account that pays 10% annually?
What cash flow today (Year 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of year 5?
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